On October 15, 2026, the RBI conducted a 1-day Variable Rate Reverse Repo (VRRR) auction with a notified amount of ₹50,000 crore. The total accepted amount was ₹9,562 crore at a uniform cut-off and weighted average rate of 5.49%, indicating selective liquidity absorption.
Overnight VRRR Auction Results
The Reserve Bank of India conducted a 1-day Variable Rate Reverse Repo (VRRR) auction on October 15, 2026, with a notified amount of ₹50,000 crore. The total value of bids received stood at ₹9,562 crore, all of which were accepted in full. The cut-off rate and weighted average rate converged at 5.49%, reflecting uniform bidding at the marginal rate.
Such auctions are instruments of liquidity management under the RBI’s Liquidity Adjustment Facility (LAF), used to absorb surplus short-term liquidity from the banking system. The partial participation—only 19% of the notified amount accepted—suggests either adequate system liquidity or limited demand for parking funds at prevailing rates.
Monetary Policy Context
The 5.49% reverse repo rate serves as a floor for short-term money market rates. This outcome may signal the RBI’s calibrated approach to liquidity, particularly ahead of government bond auctions and fiscal developments. Banks and financial institutions should assess implications for overnight investing strategies and repo market positioning.